The U.S. Small Business Administration partners with nonprofit lenders to help businesses access small infusions of cash for working capital and expenses related to inventory, supplies, equipment, furniture, and fixtures. The SBA Microloan Program aims to help small businesses that are unable to access capital from traditional sources. The average loan size is $13,000.

As with most SBA loan programs, borrowers access microloans through designated intermediary lenders. The SBA Microloan Program partners with nonprofit, community-based organizations that work directly with borrowers to offer technical assistance in addition to loans. Technical assistance counselors help borrowers identify the strengths and needs of the business, provide business development training, and offer guidance as borrowers work toward their business goals.

Interest rates depend on loan size. The maximum loan is $50,000, and funds cannot  be used to pay existing debts or to purchase real estate.

While the maximum loan term is six years, SBA-partner nonprofit lenders are often able to assist borrowers with subsequent financing.

More about the SBA Microloan program.

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